How do you know what to shoot for if you don’t know what’s achievable?
So far in this series, we’ve covered why budgeting matters. It’s not just a tool to measure costs and track profitability — it also holds production teams accountable for hitting target margins. We’ve also explored how understanding both direct and indirect costs helps contractors look at realistic profit and operating numbers.
With that foundation in place, every contractor should be asking one key question: What is the Highest Potential Profit (HPP) achievable on emergency restoration work today?
Industry data shows that the average gross margin on emergency work falls between 50–70%. Higher-performing companies push that range to 70–80%. The absolute best performers hit just over 80%. As a result, there’s a variable swing of more than 30 points between contractors doing the exact same type of work.
So what drives that gap?
Most emergency estimates in North America use industry-required software. The pricing is already there. Contractors, however, control how well they optimize scope — and that’s where the difference shows up.
First and foremost, inefficient crews are the top profit killer. Labor is your highest variable cost. Beyond that, mismanagement of equipment and subcontractors, site rework and callbacks, and poor or missing documentation all eat directly into margin.
Ultimately, knowing what’s achievable is the first step. From there, closing the gap between where you are and where top performers operate is where the real work begins.
Ryan Pritchard
Ryan Pritchard is the VP of Sales & Marketing at PSA by Canam Systems, a leading software development company delivering fully integrated web, mobile, and desktop solutions to the insurance restoration industry. With over 15 years of experience in customer service and sales, Ryan joined the organization in 2010 and has played a key role in driving consistent company growth. He has been instrumental in helping restoration businesses streamline operations and improve profitability. Ryan is passionate about building strong client relationships, identifying market opportunities, and delivering technology solutions that empower restoration contractors to succeed.
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